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August, 2006
NACHI-FUJIKOSHI CORP.

Announcement on dissolution of NACHI's subsidiary

NACHI-FUJIKOSHI CORP. dissolved its 100% owned subsidiary, FUJIKOSHI Misawa Homes Co., Ltd., which specialized in construction and sales of housing, withdrawing completely from housing business.

1.Outline
Company name: FUJIKOSHI Misawa Homes Co., Ltd.
Head Office: Toyama-city in Toyama
Capital: 50 million yen
Main Business: May, 1972
Shareholders: 100% owned subsidiary of NACHI-FUJIKOSHI CORP.
2. Time schedule

The liquidation of the company will be competed by August in 2007.